Asian stocks surged, driving the msci asia pacific index to a two-month high, as the U.S. Federal Reserve pledged to keep interest rates low and the Bank of japan expanded its bank-lending program. commodity prices rose.

The msci asia pacific index climbed 1.4 percent to 124.70 at 2:45 p.m. in Tokyo. Copper for three-month delivery in London increased 1.2 percent to $7,490 a metric ton, following yesterday’s 1.4 percent gain. Oil futures in New York advanced 0.5 percent to $82.10 a barrel, after rising 2.4 percent yesterday. Standard & Poor’s 500 futures were up 0.2 percent following a 0.8 percent gain in the benchmark index yesterday.

A recovery in the global economy, driven by lower borrowing costs and government spending programs, is boosting investor optimism for an increase in corporate profits. The average estimate for annual earnings of companies in the msci asia pacific index has risen 3.1 percent in the past four weeks, according to data compiled by bloomberg.

“Steps like these are helping grease the wheels of the recovery,” said chris hall, who helps manage about $3.3 billion at Argo Investments in Adelaide, Australia. “It’s clear the fed is going to keep rates very accommodative to stimulate the growth recovery. Japan’s way is to try and make credit easier to get. The fact that they’ve been flexible and announced these initiatives shows they’re trying to deal with the problems.”

Advancing shares outnumbered decliners on the msci asia pacific index by eight to one. Taiwan’s Taiex climbed 2 percent and Hong Kong’s Hang Seng index gained 1.6 percent.

The nikkei 225 Stock Average increased 1.1 percent in japan, where the central Bank today doubled its three-month loan facility to 20 trillion yen ($222 billion) to shore up liquidity in the world’s second-biggest economy.

South Korean Retailers

DeNA Co., a Japanese operator of shopping Web sites, soared 11.1 percent to 701,000 yen, the biggest gain in the msci asia pacific index. The company boosted its annual net-income projection by 24 percent.

South Korea’s Kospi index rose 1.8 percent as sales at the nation’s major department stores gained for a 12th month in February. Hyundai Department Store Co. increased 1.9 percent to 105,000 won.

Spending at the three biggest chains jumped 15.2 percent from a year earlier after a 4.8 percent advance in January, government data showed. The won gained 0.3 percent to 1,128.75 per dollar to near a two-month high on the sales report.

Korea Life Insurance Co., the nation’s second-largest insurer, surged 7.7 percent to 8,830 won on its first day of trading in Seoul after completing the country’s biggest initial public offering in four years.

Commodity Prices

Material producers advanced on gains in commodity prices. BHP Billiton Ltd., the world’s biggest mining company, rose 1.2 percent to A$43.30 in Sydney, and rio tinto Group, the No. 3 mining company, advanced 1.6 percent to A$76.70. Nippon Mining Holdings Inc. climbed 3.2 percent to 452 yen in Tokyo.

Indonesia’s jakarta composite index gained 2.3 percent, on course for its highest close since Feb 28, 2008, after the rupiah climbed to a 19-month high and metal prices advanced. PT Astra International, Indonesia’s biggest auto retailer, rose 4 percent as a stronger rupiah reduces the cost of importing cars and auto spare parts. PT International Nickel Indonesia gained 2.6 percent after nickel futures advanced for a second day.

Crude oil rose for a second day to trade above $82 a barrel in New York as opec ministers indicated they would refrain from increasing output at a meeting of the producer group today. Oil prices are in the right range, said Ali al- Naimi, oil minister for Saudi Arabia, the largest producer in the Organization of Petroleum Exporting Countries.

OPEC Production

“The broad consensus is that opec will leave production rates unchanged, and I can’t see any reason why they wouldn’t,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne.

South Korean bonds climbed, pushing the yield on the benchmark three-year bond down 9.5 basis points to 3.78 percent on speculation the government’s new pick for central Bank leader may keep interest rates on hold. Kim Choong-soo was named by President Lee Myung Bak yesterday to succeed Governor lee seong Tae when his term ends March 31.

The cost of protecting bonds from default decreased in Asia, approaching the lowest since January. The Markit iTraxx Asia index of 50 investment-grade borrowers outside japan fell 1.5 basis points to 91 basis points as of 8:51 a.m. in Singapore, Citigroup Inc. prices show.

A drop in the index shows improving perceptions of creditworthiness, as measured by credit-default swaps. A rise shows the opposite.